08 - Investment Report
ITEM NO. 08
Costa Mesa Sanitary District
&an Independent Special District
Memorandum
To:
Board of Directors
Via:
Scott Carroll, General Manager
From:
Marc Davis, Treasurer
Date:
February 25, 2014
Subject:
Investment Report for the Month of January2014
Summary
Attached is the Investment Report for the month of January2014. As required by the
District’s Statement of Investment Policy, the Investment Report delineates all investment
activity during the month.
Staff Recommendation
Approve the Investment Report for the month of January2014.
Analysis
This report lists the types of securities held in the District’s portfolio, the institutions from
which the securities were purchased, maturity dates and interest rates as of January 31,
2014. The District’s investments are in compliance with the Statement of Investment
Policy adopted by the Board at the June 27, 2013regular meeting, as well as the
California Government Code. The market values in this report were provided by our third
party custodian, Bank of New York, except for the Local Agency Investment Fund (LAIF).
The market value of LAIF was provided by the State Treasurer’s Office. It does not
represent the value of the underlying securities within the pool, but rather the par or cost
amount, which is the amount the District is entitled to withdraw. This reporting practice is
consistent with industry standard practices for similar funds.
Protecting our communitys health and the environment by providi
www.cmsdca.gov
Board of Directors
February 25, 2014
Page 2 of 3
The weighted average stated rate of return (current yield) for the District’s investment
portfolio as of January 31, 2014, was 0.828%. The yield to maturity of the portfolio was
0.828%. The District’s weighted average interestrate was 58basis points (0.584%) above
the daily effective yield of LAIF, which was 0.244% as of January 31, 2014. The weighted
average number of days to maturity for the District’s total portfolio was 1,000days (2.74
years). The average duration of the underlying securities in LAIF as of January 31, 2014
was 221days.
The District’s investment portfolio is in compliance with its liquidity limitations, which
requires that a minimum of 20.00% of the portfolio must mature within one year. The
percentage of the portfolio maturing in less than one year as of January 31, 2014was
26.10%.
As of January 31, 2014, the District has adequate operating reserves necessary to meet
its obligations for the next six months.
Strategic Plan Element & Goal
This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short
and long-term fiscal health of the District.
Legal Review
Legal review is not required.
Financial Review
The portfolio was budgeted to earn an average rate of 0.900% for the year ending June
31, 2014. Through January 31, 2014the portfoliohas earned a weighted average interest
rate of 0.804%. Interest rates are starting to creep up, so staff anticipates that the
weighted average interest for the portfolio will also increase slightly throughout the year,
but most likely fall below budget estimates.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the
February 25, 2014Board of Directors regular meeting at District Headquarters (631W.
th
19Street) and on the District’s website at www.cmsdca.gov.
Board of Directors
February 26, 2014
Page 3 of 3
Alternative Actions
1.Refer the matter back to staff
Attachments
Treasurer’s Report of Pooled Cash and Investments as of January 31, 2014
C O S T A M E S A S A N I T A R Y D I S T R I C T
Treasurer's Report of Pooled Cash and Investments
January 31, 2014
DepositsOutstanding
Bank BalanceIn TransitsChecksBook Balance
Active Accounts:
Bank of America 3,772,882.82$ - 203,600.09 3,569,282.73$
Total Active Accounts3,772,882.82 - 203,600.09 3,569,282.73
Market Adjustment
Market ValueIncreaseDecreaseCost
Investments:
Local Agency Investment Fund4,240,159.14$ - - 4,240,159.14$
Money Market/Sweep Account67,727.10 - - 67,727.10
Federal Agency Securities12,088,038.00 - (111,962.00) 12,200,000.00
Total Investments16,395,924.24 - (111,962.00) 16,507,886.24
Total Pooled Cash & Investments20,168,807.06$ -$ 91,638.09$ 20,077,168.97$
Costa Mesa Sanitary District
Pooled Cash and Investments by Fund
January 31, 2014
Solid Waste Fund:
Operating Reserve$ 801,000.00
Unreserved:
Designated for working capital 1,494,000.00
Undesignated 3,635,914.48
Liquid Waste Fund:
Operating Reserve 371,000.00
Reserved for Earthquakes/Emergencies 1,000,000.00
Reserved for Capital Outlay 3,442,476.62
Unreserved:
Designated for working capital 2,467,300.00
Undesignated (928,406.15)
Sewer Construction Fund 100,000.00
Facilities Revolving Fund 271,778.91
Asset Replacement Fund 508,362.16
Asset Management Fund 6,913,742.95
Total Pooled Cash & Investments$ 20,077,168.97
2/19/14
Marcus D. DavisDate
Treasurer
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C O S T A M E S A S A N I T A R Y D I S T R I C T
Investment Activity Summary
January 31, 2014
$ 16,504,950.28
Total investments outstanding as of December 31, 2013
Additions:
Gain on sale of investment -
Investment purchases -
Deductions:
Investments called -
Net increase (decrease) in Sweep Account 1.22
Net increase (decrease) in LAIF 2,934.74
$ 16,507,886.24
Total investments outstanding as of January 31, 2014
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COSTA MESA SANITARY DISTRICT
Summary of Policy Limitations
January 31, 2014
Current %
of Market Value
Description01/31/14Maximum %
U.S. Treasury Bills0.00%Unlimited
U.S. Treasury Notes0.00%Unlimited
Federal Agency Issues:
FICB0.00%Unlimited
FLB0.00%Unlimited
FHLB0.00%Unlimited
FHLMC36.17%Unlimited
FNMA31.56%Unlimited
FFCB5.99%Unlimited
Other *0.00%Unlimited
Banker's Acceptances0.00%25% (1)
Certificates of Deposit0.00%25%
Negotiable Certificates of Deposits0.00%25% (1)
Commercial Paper0.00%25% (1)
Medium Term Corporate Notes0.00%20% (1)
LAIF (Local Agency Investment Fund)25.86%40,000,000
Shares of Benefical Interest0.00%20%
Money Market/Mutual Funds (Sweep Acct)0.41%10% per fund (2)
100.00%
Total
% of portfolio maturing under one year 26.10%no less than 20%
% of portfolio maturing over one year73.90%
100.00%
(1) Further limited to 10% in any single issuer
(2) Also limited to 20% in total.
*These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE
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